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Friday, January 17, 2014

Smuggling up, govt seeks gold purchase info from jewellers
Income Tax Department has sought information such as the number and value of transactions, mode of payment and transaction code in a three-page letter sent to jewellers.
Mumbai, January 16, 2014: The government has asked jewellers to provide information on purchases of gold bars or jewellery worth more than Rs 5 lakh by the end of this month, a move seen keeping a check on big transactions amid rising smuggling.

India has been trying to curtail shipments of gold, the second-biggest import bill after crude oil, as it seeks to curb a gaping trade deficit. As a result, jewellers have been forced to depend on recycled or smuggled gold to meet demand. The Income Tax Department has sought information such as the number and value of transactions, mode of payment and transaction code in a three-page letter sent to jewellers. Tax officials could not immediately be reached for comment. Between April and September, customs officials seized nearly double the amount of illegal gold caught in the whole of 2012.

Courtesy: The Indian Express